In Portuguese construction, a client and a main contractor can be held liable for labour-law breaches committed by their subcontractors.
What it means
Portuguese law makes the client (the party ordering the work) and the main contractor jointly and severally liable for certain labour-law breaches by subcontractors (Labour Code, article 551, as strengthened in 2016). This means each of these parties can be pursued for the whole debt, not just its own share. This covers unpaid wages and other labour claims, and it also covers fines issued for breaches further down the chain.
Who it applies to
This rule applies in construction work generally. It does not depend on where the work is physically carried out, and it does not depend on how much of the contract is labour versus materials. There is no percentage or location threshold that removes this liability: it applies regardless of the size or type of the job. Whether a given contract is a construction (works) contract at all is a legal qualification that is decided case by case.
How it works
When a subcontractor breaches labour law, for example by failing to pay wages correctly, the client and the main contractor can be pursued for that breach as well as the subcontractor itself. Exactly how far down the chain this liability reaches is not fully settled. In general terms, liability can extend through the subcontracting chain, beyond just the party each company contracted with directly.
For workers posted to Portugal by a foreign employer, a specific rule also applies: under Lei 29/2017, article 12, the contracting party is jointly liable for the posted worker's unpaid net wages, up to the legal, collective or contractual minimum.
What to watch out for
No document, check or approval can certify that a client or main contractor is immune from this liability. Showing what checks were carried out and what was agreed helps in a dispute or an inspection, but it does not remove the exposure. Take legal advice on the actual contracting arrangement.
Having contracts and compliance paperwork in place does not stop a client or main contractor from being held liable for a subcontractor's labour-law breach. It only helps show what was done if the case is inspected or disputed.